25. A loan of R15,000 is charged at an annual interest rate of 8%, compounded monthly. If the loan is repaid in full after 2 years, what is the total repayment amount? A. R18, 003.56 B. R 17,593.04 C. R17,642.19 D. R19, 024.87

25. A loan of R15,000 is charged at an annual interest rate of 8%, compounded monthly. If the loan is repaid in full after 2 years, what is the total repayment amount? A. R18, 003.56 B. R 17,593.04 C. R17,642.19 D. R19, 024.87

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter4: Time Value Of Money

Section4.17: Amortized Loans

Problem 1ST

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Concept explainers

Effective Interest Rate

The term interest rate can be defined as the amount that is charged by the lender as a percentage on the principal amount. Interest rate which is charged annually is known as annual percentage rate.

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25. A loan of R15, 000 is charged at an annual interest rate of 8%, compounded monthly. If the loan is repaid in full after 2 years, what is the total repayment amount? A. R18,003.56 B. R
17,593.04 C. R17,642.19 D. R19,024.87

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